Just curious--how do you treat AFT loan payments when the deposit account does not have sufficient funds to cover the payment? Do you transfer the payment on the day it is due and overdraw the account or wait until sufficient funds are available to cover the payment.

If you pay these into an overdraft, your safety and soundness examiners may frown on this practice, as it artificially deflates the past-due status of your loans.

Our system actually holds the payment function until the account has sufficient funds to cover. We use and ITI system.